JGB futures are testing resistance at..........>

JGBS: JGB futures are testing resistance at 153.00, garnering further support

from the breakdown of the latest round of Rinban operations after the Bank left

the size of its 5-25+ Year Rinban operations unchanged. The suppressed outright

yield levels have resulted in speculation suggesting that the BoJ may have to

trim its JGB purchases again owing to the flatness of the curve.

- Offer to cover ratios of today's operations were as follows:

- 5-10 Year 2.50x (prev. 3.10x), 10-25 Year 2.31x (prev. 2.60x), 25+ Year 3.26x

(prev. 4.71x), JGBi 5.13x (prev. 4.72x).

- The belly of the curve outperformed in the morning, although the super-long

end has now caught up.

- Japanese PM Abe met with BoJ Governor Kuroda today, but none of the comments

have been made public.